Country's largest lender, State Bank of India is planning to expand its retail loan portfolio. According to the senior official of SBI, the bank will allow its existing borrowers to shift their home loan by waiving the third-party guarantor clause.

No guarantor clause is an added attraction, besides the lower interest rates. The bank charges 10 per cent for loan up to Rs 30 lakh and 10.15 per cent for loans above Rs 30 lakh.

Normally, when borrowers shift lenders, they have to provide a guarantor till the title deeds of the property can be pledged with the bank. And finding a guarantor in such a short period is a big headache.

Most banks seek guarantor in the interim period as the loan is "clean" without backing of any collateral or security. According to the SBI official, this clause was a hindrance for the borrowers to shift home loans.

SBI is the largest player in the home loan segment. Home loan portfolio as on September end was Rs 1, 08,381 crore.

The loan processing time has also been reduced from 10 days to 2-3 days.